Mr. Agustín Carstens, Deputy Managing Director of the International Monetary Fund (IMF), announced today that the management of the IMF will recommend to the Executive Board that it approve the Dominican Republic's request for support of its economic and financial program through a 24-month, Stand-By Arrangement amounting to SDR 437.8 million (US$618 million). It is anticipated that the Executive Board will take up this request in late August 2003.

In announcing this decision, Mr. Carstens said:

"The program proposed by the authorities reflects their strong commitment to address current macroeconomic pressures and problems in the banking system. These developments have weakened the economy after years of rapid economic growth and macroeconomic stability. The program envisages comprehensive measures to strengthen the banking system, including improved prudential regulation and supervision. The program also contains measures to improve public finances and ensure debt sustainability, and prudent monetary policy in the context of a flexible exchange rate. These policies will help restore confidence and reduce inflation, which-together with efforts to strengthen the social safety net-should alleviate the social impact of the recent disruption to the country's impressive economic record."